|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIAVIN LTD |
|
|
|
|
Registered Office : |
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, 7-39 Ma Tau Wai
Road, Hung Hom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
25.10.1994 |
|
|
|
|
Com. Reg. No.: |
18960793 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
|
Line of business : |
Importer, exporter and wholesaler of all kinds of diamonds and
jewellery products, emerald, precious stones, etc. |
|
|
|
|
No. of Employees : |
12 |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Hong Kong - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
|
Source : CIA |
DIAVIN LTD
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, 7-39 Ma Tau Wai
Road, Hung Hom, Kowloon, Hong Kong.
PHONE: 2369 6123, 2369 0130
FAX: 2375 2526
E-MAIL: info@diavin.com
chirag@diavin.com
Managing Director: Mr Chirag
Arvindkumar Shah
Incorporated on: 25th October, 1994.
Organization: Private Limited Company.
Capital: Nominal: HK$2,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Group Annual Turnover: US$155~160
million.
Employees: 12.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
DIAVIN LTD
Registered Head
Office:-
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, 7-39 Ma Tau Wai
Road, Hung Hom, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Dianish (H.K.) Ltd. Taipei Branch, Taiwan.
Dianish (H.K.) Ltd., Hong Kong.
(Same address)
Diavin Diamond Shanghai Co. Ltd., China.
Diavin Jewellery Company, Hong Kong.
(Same address)
Diavin Jewellery Pty. Ltd., Australia.
Diavin Jewellery Pty. Ltd., India.
Diavin, Hong Kong. (Same address)
Navin Gems, India.
18960793
0494691
Managing Director: Mr Chirag
Arvindkumar Shah
Nominal Share Capital: HK$2,000,000.00
(Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 25-10-2012)
|
Name |
|
No. of shares |
|
Chirag Arvindkumar SHAH |
|
800,000 |
|
Shraddha Chirag SHAH |
|
200,000 |
|
|
|
|
|
|
Total: |
1,000,000 ======= |
(As per registry dated 25-10-2012)
|
Name (Nationality) |
Address |
|
Chirag Arvindkumar SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Kowloon,
Hong Kong. |
|
Shraddha Chirag SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Kowloon,
Hong Kong. |
(As per registry dated 25-10-2012)
|
Name |
Address |
Co. No. |
|
Elegant Secretaries Ltd. |
Room 804, 8/F., Lap Fai Building, 6-8 Pottinger Street, Central, Hong
Kong. |
0418716 |
The subject was incorporated on 25th October, 1994 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Eminent Gold
Ltd., name changed to the present style on 28th March, 2001.
Formerly the subject was located at Unit 6, 7/F., Chevalier House, 45‑51 Chatham
Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with
effect from 8th December, 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products,
emerald, precious stones, etc.
Employees: 12.
Commodities Imported: India,
Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe,
Middle East, Australia, etc.
Group Annual Turnover: US$155~160
million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewelry Manufacturers Association, Hong Kong.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$2,000,000.00
(Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Alternation of Capital:-
|
Initially |
paid up |
HK$ 10,000.00 |
|
March 2012 |
paid up |
HK$1,990,000.00 |
|
|
|
|
|
Total: |
paid up |
HK$2,000,000.00 ============= |
Increases of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$1,000,000.00 |
In |
March 2012 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit
every year.
Condition: Keeping in an
active condition.
Facilities: Making rather
active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Good.
Diavin Ltd. had issued just 10,000 ordinary shares of HK$1.00 each at
the beginning and was increased to 1 million ordinary shares of the same value
each on 31st March, 2012. The subject is
jointly owned by Mr. Chirag Arvindkumar Shah, holding 80% interests; and
Mr. Shraddha Chirag Shah, holding 20%.
The two Shahs are also directors of the subject. Being Hong Kong ID Card holders, they
have got the right to reside in Hong Kong permanently.
The subject is a diamond importer, exporter and wholesaler. It has got an affiliated company Diavin
Jewellery Company [Diavin] located at its operating address. The subject and Diavin are engaged in the
same lines of business.
Diavin is a subsidiary of Navin Gems in India. Navin Gems is a diamond trading company and
sightholder in India.
The subject is trading in carat size diamonds and loose diamonds. Most of the commodities are imported from
India.
The subject is carrying the following commodities:-
·
Finished Jewellery
·
Diamond Jewellery
·
Gem Set Jewellery
·
Gold Jewellery
·
Platinum Jewellery
·
Other Jewellery
·
Materials
·
Polished Diamonds
·
Equipment and Services
·
Stone Setting Equipment
Its main products are loose diamonds, diamond bracelet, carat sized
diamonds.
The subject has established its own diamond and jewellery manufacturing
facilities in China. The China factory
is able to produce 2,000 units of jewellery products monthly.
The China factory manufactures the following commodities:-
·
Diamond Gold Jewellery 9-karat, 14-karat,
18-karat, 24-karat, Others
·
Diamond Platinum Jewellery
·
Gemset Jewellery 9-karat, 14-karat, 18-karat,
24-karat, etc.
·
Gemset Platinum Jewellery Pt900, Pt950, etc.
·
Gold Jewellery 9-karat, 14-karat, 18-karat,
Others
·
Platinum Jewellery Pt900, Pt950, etc.
The subject is engaged in marketing and distributing rough and cut,
polished diamonds. Its products include
jewellery products, ranging from diamonds and precious stones such as sapphire
and semi-precious stones in 9K, 14K, 18K gold and platinum. Various price levels are offered. Jewellery range includes rings, earrings,
pendants, bracelets, necklaces, charms and cufflinks. Commodities are exported to worldwide
countries.
The subject is one of the largest stone suppliers among the globe and it
has its own stone cutting factory which is able to provide customers with
collections of fine diamonds.
Currently, the subject has set up offices in Taipei of Taiwan, Shanghai
of China and Sydney of Australia. It has
become one of the significant diamond and jewellery suppliers in the Asia
Pacific regions with over 150 staff and workers. The subject has got its own in-house
designers.
The annual turnover of the subject and its associated companies amounts
to US$155 to 160 million. Business is
rather active.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, it is going to
take part in HKTDC Hong Kong International Jewellery Show 2013 which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2013.
As the history of the subject in Hong Kong is over eighteen years, on
the whole, consider it good for normal business engagements.
Property information of the company:-
1. Property Location: Unit 6 on 7/F., Chevalier House, 45-51
Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
01-08-2007 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Unit 6 on 10/F., Chevalier House,
45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
01-08-2007 |
Instrument: Mortgage Property: 187/19,060th parts or shares of and in The Remaining Portion of
Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot
No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 7/F. of Chevalier House,
45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the Lender to the
Borrower whether alone or jointly with any person and outstanding in respect
of general banking facilities |
|
30-09-2008 |
Instrument: Mortgage Property: 191/19,060th parts or shares of and in The Remaining Portion of
Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot
No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of Chevalier House,
45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the Lender to the
Borrower whether alone or jointly with any person and outstanding in respect
of general banking facilities |
|
30-09-2008 |
Instrument: Rental
Assignment Property: 191/19,060th parts or shares of and in The Remaining Portion of
Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot
No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of Chevalier House,
45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
DIAMOND INDUSTRY
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond production
in India can be traced back to almost 8th Century B.C. India,
in fact, remained undisputed leader till 18th Century when Brazilian
fields were discovered in 1725 followed by emergence of S. Africa, Russia and
Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance focused
strategies, modern management and technology.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under
DIAMOND SAGA
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many diamantaires
borrowed money during the economic downturn two years ago and diverted funds to
businesses like real estate and capital markets. Many of themselves made money
from these businesses but their diamond companies have gone sick and declared
insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SCs credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.